Saudi 2024 Budget: 1.172 Trillion Riyals in Revenues

The Saudi Cabinet approves the 2024 budget (SPA)
The Saudi Cabinet approves the 2024 budget (SPA)
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Saudi 2024 Budget: 1.172 Trillion Riyals in Revenues

The Saudi Cabinet approves the 2024 budget (SPA)
The Saudi Cabinet approves the 2024 budget (SPA)

The Saudi government, in a meeting chaired by King Salman bin Abdulaziz on Wednesday, approved the Kingdom’s 2024 budget.

While next year’s revenues are estimated at SAR 1.172 trillion, total expenditure is projected at SAR1.251 trillion, resulting in a limited deficit of SAR79 billion.

After the budget’s approval, Crown Prince Mohammed bin Salman highlighted the achievements of the Kingdom since the launch of its national transformation plan “Vision 2030.”

He commended the government’s ongoing structural reforms in both the financial and economic realms, aiming to sustain economic growth in light of the substantial developmental opportunities and resources available to the Kingdom within the framework of Vision 2030.

This strategic vision, guided by the directives of King Salman, has notably contributed to the clear and significant increase in the non-oil sector’s contribution to Saudi Arabia’s Gross Domestic Product (GDP).

The Crown Prince emphasized the government's commitment, as reflected in the fiscal year 2024 budget, to stimulate economic growth through an expansion of government spending.

He clarified that the budget figures serve as a supportive framework for numerous programs and initiatives, encompassing investments to enhance infrastructure, improve the quality of services provided to citizens, residents, and visitors.

Additionally, the budget allocates resources for the development of promising economic sectors, fostering investment attraction, stimulating industries, increasing local content, and boosting non-oil Saudi exports.

He commended the pivotal role played by both the Public Investment Fund (PIF) and the National Development Fund (NDF).

The Crown Prince also affirmed the ongoing efforts to enhance the Kingdom’s public financial performance by increasing financial capacity and building government reserves.

This approach aims to strengthen the Kingdom’s economic resilience, maintain sustainable levels of public debt, and empower the nation to confront any future developments or crises.

Furthermore, he stressed that the increase in spending is primarily driven by the government’s commitment to continually improve the level of public services.

The implementation of various projects and the expansion of spending on sectoral and regional development strategies aim to bring about positive structural changes, expanding and diversifying the economic base.

The Crown Prince also emphasized the development of partnerships with the private sector, aiming to empower and incentivize it to play a role in achieving economic diversification.

This strategic approach seeks to enable the labor market to absorb more Saudi workers, create job opportunities, and reduce unemployment rates among Saudis.

The total number of Saudis in the workforce has risen to 2.3 million this year.

Additionally, there is a focus on improving the investment environment to make it attractive, thereby increasing both local and foreign investment, fostering non-oil exports, and enhancing the non-oil trade balance.

The Crown Prince further elaborated on the ongoing journey towards economic diversification by supporting promising sectors.

The Kingdom aims to increase tourism targets to 150 million visitors, both domestic and international, by 2030. Efforts also include building a vibrant sports sector.

The commitment to developing the industrial sector, a vital component of the Saudi economy, was emphasized as well.

This involves diversifying the industrial base and value chains. The goal is to triple the industrial GDP to SAR 895 billion by 2030, making a significant contribution to the development of non-oil exports.

The PIF, as a key investment arm, complements government efforts to diversify the economy, along with the pivotal role played by the NDF and its affiliated funds in providing easy financing for the private sector.

Addressing the Kingdom’s regional and international role, the Crown Prince affirmed its commitment to global security and stability, recognizing them as essential factors for development and prosperity.

The Kingdom is dedicated to enhancing supply and value chains to serve the economic development of all countries globally.

The Crown Prince reaffirmed the Kingdom’s determination to continue enhancing its economic attractiveness for both local and foreign investments in the coming year.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.